Senate panel OKs currency action
The Senate Banking Committee approved legislation aimed at forcing the U.S. Treasury Department to take a tougher line against China and other countries lawmakers say are keeping their currencies weak to boost exports.
The measure, introduced by Sens. Christopher J. Dodd (D-Conn.) and Richard C. Shelby (R-Ala.), was approved 17 to 4.
The action marks the second time in two weeks that a Senate panel has approved a measure aimed at forcing China to raise the value of its currency; the Senate Finance Committee passed separate legislation last week.
The vote came as U.S. Treasury Secretary Henry M. Paulson Jr. was in Beijing for talks with Chinese leaders on their currency, the yuan, food safety and the environment. Paulson blasted both pieces of legislation in a letter to Senate leaders, saying they risked kicking off protectionist measures worldwide.
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